Last year, NFTs catapulted into an asset class worth tens of billions of dollars. However, this sector’s success also came with a big bag of growing pains for millions of creators and curators across the globe.
For example, NFT drops feature assets that are priced well below what the market will value them at and are, in most cases, sold on a first-come-first-serve basis. Meaning, that the race is on for buyers who want their piece of a collection, and competing in that race requires fast hands, a lot of patience, and acceptance of the idea that you will likely pay a hefty sum in gas fees.
If the term “gas fee” is new to you, let us be clear, we’re not talking about the soaring gas prices at the pump. Sadly, the gas fee we’re referring to is far more expensive than that. A gas fee in DeFi is the payment a user makes to complete a transaction on a blockchain. NFT drops typically take place on Ethereum, and fees, paid in Ether, are determined by the demand on block space. But what happens when a chain can’t handle a larger-than-usual number of users?
The low throughput of blockchains like Ethereum and high-traffic congestion that is common during a hyped NFT drop results in many users voluntarily upping their GWEI (transaction cost a.k.a. gas fee) to front-run their purchase and secure their NFT. Furthermore, the advent of bots to circumvent limitations on purchase quantity only exacerbate this problem, causing only a handful of participants in the sale to succeed in their attempt. At the same time, the rest are left with a negative balance in their wallets. This joyless scenario is what we in the business refer to as a “gas war,” and it’s one of many pain points that Telos set out to eradicate from day one.
Telos plans to make NFTs an integral part of its ecosystem, one that has garnered much attention in recent weeks after a promising partnership with Byte.io led to the network’s first-ever NFT challenge. The competition is open to all digital graphic designers regardless of their experience in the world of NFTs and has already received several submissions just one week after its launch.
However, apart from raising awareness for talented artists looking to make a name for themselves, the contest’s goal is to highlight the unfathomable power of the Telos EVM. The Telos EVM Mainnet went live in 2021 and solved all of the issues that have gone unchecked within the Ethereum blockchain. This includes speeds that are over 30x that of Ethereum and minting costs that total up to several cents per NFT. Front running is also avoided thanks to fixed transaction costs — a novel concept that has left Telos users pleasantly surprised.
While the Telos EVM provides NFT curators with a more optimal way to acquire their favorite digital assets, it also pivotally benefits project developers. Contract deployment is yet another pain point that tarnishes the NFT sector for creators. Depending on network traffic, deploying an ERC-721 contract on Ethereum could cost hundreds, or in some cases, thousands of dollars. That number is reduced to mere pennies on the Telos EVM, and as a bonus, projects that launch on Telos will have the added benefit of assistance from an in-house NFT Curator, The Big Gooey.
As NFTs continue to integrate into new industries and novel use-cases are unveiled, the number of users will continue to skyrocket, as will the need for a network to handle this meteoric growth. With its unrivaled capacity and record-low costs, the Telos EVM offers NFT creators and curators a welcome relief from the issues that arise when minting on Ethereum and other networks. In addition, it features the scalability required to meet the growing demands of the NFT market and facilitate its mass adoption.
The Telos EVM is the most powerful and scalable Ethereum Smart Contract platform available today, built to power Web 3.0. Telos features a robust, third-generation, ESG compliant evolutionary blockchain governance system, including smart contracts, advanced voting features, and flexible and user-friendly fee models. Telos supports the blockchain ecosystem by serving as incubators and accelerators for decentralized applications through development grants. Come build with us.